Pound Sterling (GBP) Exchange Rates Mixed in Absence of Data
Trade in the Pound (GBP) was mixed on Thursday as a lull in UK economic data left Sterling exposed to movement in other currencies.
However the GBP exchange rates were able to derive some support from expectations that the Bank of England (BoE) will raise interest rates next week, with markets pricing in an 85% chance of the bank hiking rates in August.
Today’s session is likely to result in a similar performance by the Pound, with the further absence of data potentially leaving GBP exchange rates adrift.
GBP/EUR Exchange Rate Stalled as ECB Signals No Changes to Policy
The Pound Euro (GBP/EUR) exchange rate trended narrowly on Thursday as the European Central Bank (ECB) voted to leave interest rates on hold once again.
The result had been widely predicted ahead of time so failed to elicit much of a change in the Euro, with President Mario Draghi’s following press conference also offering no surprises as he stuck to his commitment to leave interest rates on hold until next summer.
GBP/USD Exchange Rate Slumps Following Solid Rise in US Goods Orders
The Pound US Dollar (GBP/USD) exchange rate fell back on Thursday, tumbling by around half a cent following a rebound in US Durable Goods Orders.
While new orders fell short of expectations, rising 1% against the 3% that had been forecast, the data was still enough to allow the USD exchange rate tick higher in the afternoon.
The US Dollar looks poised to skyrocket later today, with the release of the latest US GDP estimate, with markets forecasting it will reveal that the US economy expanded 4.1% in the second quarter, which would be a substantial jump from the 2% growth seen at the start of the year.
GBP/CAD Exchange Rate Slides as US-EU Trade Talks Bolster Hopes
The Pound Canadian Dollar (GBP/CAD) exchange rate fell back yesterday, with the Canadian Dollar (CAD) being lent considerable strength as a potential US-EU trade deal saw President Trump walk back plans for tariffs on EU car exports; something CAD investors are hopeful may be extended to Canada as well.
GBP/AUD Exchange Rate Soars as the Chinese Yuan (CHY) Plummets
The Pound Australian Dollar (GBP/AUD) exchange rate surged by over half a cent on Thursday, as the ‘Aussie’ came under considerable pressure following a downturn in the Chinese Yuan (CHY).
With a large portion of Australia’s exports destined for China, any notable fall in the Yuan is seen as having a negative impact on the Australian economy.
GBP/NZD Exchange Rate Rises as Risk Sentiment Weakens
The Pound New Zealand Dollar (GBP/NZD) exchange rate also advanced during yesterday’s session with the pairing in a similar situation as GBP/AUD as the ‘Kiwi’ was weakened by the fall in the Yuan and the corresponding dip in market risk appetite.